Buying Commercial Property – Structure

Over the next few weeks we will be looking at some of the tax considerations for those buying commercial property, starting this week with the ownership structure.

It is important to think through early on how the property will be bought. The main options are personally, via a limited company (trading company as premises or separate company as an investment) or a partnership.

The most tax efficient option depends on the specific circumstances.

Key points to consider include purpose for buying, to use or as an investment for rental, how long do you expect to keep the property for, if you are using it as your own business premises will you sell it at the same time as the business or retain it.
It pays to do some number crunching early on to get the correct balance between affordability and tax efficiency.

It is crucial to make to correct choice at the outset as very often changing your mind post acquisition will mean paying two lots of stamp duty land tax.